Flip-City GroupStructure and eGreenback Token Circulation.
Use Case: Investment Company Sells Property Faster Than Ever
REIC LLC is planning on its next real estate investment project. 3 years ago, it invested in the development of a prime office building in London. The building is now ready and 50% of the space was sold or leased out during the construction period.
The project is quite successful, and it is expected to reach 100% occupancy at the projected rental rate in 6 months, but REIC has gone slightly beyond its budget and now lacks the liquidity to make the next promising investment. The company is limited on debt-financing opportunities by previous loans’ covenants. The CFO decides to sell out part of the project to gain the necessary liquidity. Currently, sales of such properties take at least several months, and he’s looking for new sales technologies, because the other project may be outbargained by competitors.
eGreenbacks Platform lists one floor of the building, promising to sell it within 45 days. As the platform gives access to investors all around the globe and demand for exposure on prime offices in London is high, this tokenized property is easily sold ahead of schedule. REIC not only receives the funds, but now also has a unique price discovery instrument for the building, as tokens are traded on the secondary market, and the current fair price for a square meter is determined by the market. REIC joins the community and integrates the eGreenbacks Protocol as one of the sales channels. Now, company properties are listed both on its own website and on the Platform, which makes the tokenized sales even faster and promotes the eGreenbacks Protocol.
Use Case: Pedro Gets Money for Stanford by Tokenizing His Apartment
Pedro is an employee in an office of a multinational company. To make the next huge move in his career, he needs an MBA degree. He has just received an acceptance letter from Stanford Graduate School of Business and is happy as ever. He would not miss such an opportunity, but tuition fees at Stanford’s MBA program are exorbitant. The first academic year alone is over 100,000.
Pedro’s initial plan was to cover part of the expenses by renting out his house with the remaining part financed by bank loans. Pedro’s calculations show that the monthly interest payments are higher than the rental income.
Another option is to sell his house, but that is the least desired scenario, since Pedro is emotionally attached to this property.
eGreenbacks allows Pedro to sell a fraction of his house, gain cash instantly, and at the same time continue to benefit from exposure to this income-producing property along with other investors. His house is tokenized through the eGreenbacks Protocol and listed on the Platform. He can buy and sell any number of tokens depending on his current financial situation and cash flows. Also, the Protocol gives him the opportunity to buy back all the tokens.